Last week, Sam Bankman Fried (SBF), the FTX crypto exchange CEO, shared a series of regulatory proposals for the broader crypto community to consider implementing. The proposal contains standards and norms that guide topics such as hacks, assets that can be termed securities, regulation, DeFi, and others.
The proposal was met with criticism by some sections of the crypto community. DeFi users and those who believe that crypto shouldn’t be censored were the loudest critics.
In an extensive Twitter thread on Saturday, he tried to calm his critics by making further explanations and revising some of his earlier posts.
The highlight of SBF’s initial proposal and criticisms
SBF showed that he might be leaning towards regulation and censorship. He initially wrote that “in a perfect and logical world,” both centralized and decentralized applications should “respect OFAC’s sanctions lists.”
A lot of people were not happy with that statement. Anthony Sassano criticized him by calling him cancer to the ecosystem.
SBF is and always will be a cancer on this ecosystem. Anyone supporting him and his cronies should be ashamed.
The Founder of ShapeShift, Erik Voorhees, accused the CEO of glorifying the U.S. OFAC. Vorhees published a blog piece responding to SBF’s proposal’s key points, which Sam acknowledged.
Sam’s U-turn
Sam made a bit of a compromise by accepting that DeFi should be uncensored. He wrote, “It is extremely important that on-chain code and DeFi remain free and open, and uncensored.”
He also tweeted, “I totally understand that lots of people will disagree with me on various points. That’s great—it means I have people to learn from. And I really do think that regulation is going to get better, clearer, and create pathways for crypto to come back onshore.”
